(Write only correct option , dont describe it)

QUESTION 5

1. Badger Tool and Die Company has 100,000 shares outstanding and plans to pay $1.00 per share in dividends each quarter next year. Badger has a capital budget of $700,000 for next year and plans to maintain its present debt ratio of 0.30. If earnings are expected to be $7.20 per share, how much external equity must Badger raise?

   	a.	None
   	b.	$210,000
   	c.	$170,000
   	d.	$490,000

1 points

QUESTION 6

1. The net effect of a stock dividend is to increase ____.

   	a.	the firm's total stockholders' equity
   	b.	total dividends
   	c.	stock prices
   	d.	the number of shares outstanding

1 points

QUESTION 7

1. All except which of the following are types of true leases?

   	a.	Operating lease
   	b.	Financial lease
   	c.	Capital lease
   	d.	Maturity lease

1 points

QUESTION 8

Heintz Corp. has just declared a 10% stock dividend. The company's pre-stock dividend common stockholders' equity was as follows:

Common stock ($0.50 par, 10,000,000 shares)	$ 5,000,000
Contributed capital in excess of par	$ 48,000,000
Retained earnings	$ 97,500,000
Total common stockholders' equity	$150,500,000

If the common stock of Heintz was selling at $32 a share prior to the stock dividend, what will the retained earnings be after the stock dividend is distributed?

	a.	$118,500,000
	b.	$65,500,000
	c.	$97,500,000
	d.	$66,000,000